How Can the Lightning Network Save Bitcoin?
When Bitcoin (BTC) first appeared on the market, people saw it as a new way to trade and exchange money without intermediaries. The cryptocurrency did not seem very secure, but it still gained great interest among entrepreneurs and investors. Today, 15 years later, Bitcoin received recognition as the main cryptocurrency in the world. BTC is considered a global Internet native currency, and some crypto-enthusiasts even predict a complete transition to a decentralized economic system in the future.
Bitcoin indeed has enormous potential for realizing the opportunities of the Crypto World and transforming the centralized economy into a more convenient and accessible format, but it comes with its costs. The main problem of the number one crypto is its scalability.
Bitcoin is hindered by its own popularity. Due to increased demand (BTC still holds a leading position in the cryptocurrency market), the speed of transactions on the blockchain decreases, and their cost increases. This problem is now being addressed by specialists who are developing new effective protocols. One of such solutions is the Lightning Network. What is it and how will it help to save Bitcoin?
Lightning Network – what is it?
In 2015, it became obvious that Bitcoin's throughput could not cope with the flow of transactions. Blockchain developer Joseph Poon decided to solve this problem and, together with his colleagues, developed a separate scaling system – the Lightning Network. The concept of this new solution was described in the white paper of the project in 2016.
Lightning Organization (LN) is a L2 convention delivered on top of Bitcoin that can accelerate the method involved with moving assets and limit charges. That is, clients will actually want to move their coins quicker, in bigger volumes and with lower charges.
The makers of LN noticed that Bitcoin itself, without outside help, "isn't fit for addressing the requirements of the worldwide trade market". The Lightning Organization framework is as of now being effectively coordinated by huge stages like OKX and Kraken.
Upsides and downsides of Lightning Organization
From the outset, clearly the new improvement has turned into a salvation for Bitcoin. With a throughput of the world's most memorable digital currency of 7 TPS and a typical exchange season of 10 minutes, any speed increase of the cycle will be an extraordinary assistance. The Lightning Organization vows to build throughput to 1 million TPS! Exchange handling could become prompt.
